Presented by: Insurance Impact of Tornadoes This spring’s tornado losses are prompting insurers to rethink tornado deductibles.

What you saw was a loss that was held mostly at the domestic insurer level.

Sanjay Godhwani, Chartis U.S. and Canada Region

While reinsurers took a hit on first-quarter losses from catastrophes such as the New Zealand and Japan earthquakes, domestic insurers bore most of the brunt from the U.S. tornadoes in the second quarter of 2011. While these events have not necessarily created any broad change in the insurance market, they have prompted discussions about deductibles. Insurers are starting to ask if they should require higher deductibles for tornado coverage in high-risk areas, as they do for wind coverage in hurricane-prone coastal areas.

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